PRS is suitable for long-term investment, and long-term investment can bring up to 4.63% investment return.
According to the official website of the Private Retirement Fund (PRS), the investment performance of PRS funds in the past year was not very good, and only three funds had positive annual returns. However, when stretched over a 5-year period, the highest investment return of 4.63% can be generated.
The PRS is a government-initiated retirement plan aimed at people who want to make extra preparations for their retirement. The Private Retirement Fund Scheme (PRS) aims to give people a second option besides the Employees Provident Fund (EPF).
The Private Retirement Scheme (PRS) is managed by individual trusts in the country, but is overseen by the PPA established by the government. Therefore, there is no doubt about the legitimacy of the PRS.
The official website of PRS released investment return data from December 2021 to November 2022, in which RHB Retirement Series – Islamic Balance had an investment return of 28.95% in the past year, Principal PRS Plus Conservative A had an investment return of only 0.26% in the past year, while RHB Retirement Series-Conservative had 0.06%, and other funds’ returns are all in the negative category.
As for the period from December 2017 to November 2022, Public Mutual PRS Equity offers an annual return of 4.63% p.a., Public Mutual PRS Consevative offers an annual return of 4.08% p.a., and Principal PRS Plus Conservative A offers an annual return of 3.66% p.a.
PRS has a number of benefits, the first of which is that investors are free to choose which units of the trust they wish to invest in. PRS investors are also entitled to a personal income tax deduction of up to RM3,000.
(Information from PRS official website)
